Community West Bancshares · NASDAQ:CWBC
Community West Bancshares — Central Valley Community Bancorp — 21st Annual KBW Community Bank Investor Conference 2020
22 slides from Community West Bancshares's conference presentation, Jul 29, 2020
Slide 1: Investor Presentation – 21st Annual KBW Community Bank Investor Conference
Investor Presentation 21st Annual KBW Community Bank Investor Conference July 28 - 30, 2020 Jim Ford President & CEO Dave Kinross EVP CFO James Kim EVP COO
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain matters discussed in this report constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not historical facts, such as statements regarding the Company’s current busi
Slide 3: Experienced Management Team
Experienced Management Team Years at Years of Executive Position CVCY Experience James M. Ford President & CEO 6 40 David A. Kinross EVP, Chief Financial Officer 14 30 James J. Kim EVP, Chief Operating Officer 3 20 Patrick J. Carman EVP, Chief Credit Officer 11 48 Ken Ramos EVP, Market Executive – S
Slide 4: Overview
Overview 20 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $192 Million Institutional Ownership 46% Insider Ownership 16% Total Assets $1.91 Billion Headquarters Fresno, CA Number of Branches 20 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of Jun
Slide 5: Financial Highlights
Financial Highlights 2020 Q2 YTD 2019 2018 Total Assets $1.91 Billion $1.60 Billion $1.54 Billion Net Income $8.92 Million $21.44 Million $21.29 Million Diluted EPS $0.71 $1.59 $1.54 Net Interest Margin 4.11% 4.51% 4.44% ROAA 1.05% 1.36% 1.35% ROAE 7.92% 9.39% 10.07% Cash Dividends per share $0.22 $
Slide 6: COVID-19 Responses
COVID-19 Responses • Implemented Pandemic Plan mid February 2020 to address COVID-19 and escalated activities into early March 2020 • California governor enacted “shelter-in-place” for non-essential businesses on March 19, 2020 • We have successfully split our operations center into two functions th
Slide 7: COVID-19 Responses (continued)
COVID-19 Responses (continued) • Implemented a 90-day loan deferral program with 290 deferrals representing $179 million in outstanding loan balances at June 30, 2020 • Added resources to the Credit Administration team to do additional targeted segment and loan analysis and reporting (LTV, DSC, Gove
Slide 8: Attractive Investment Opportunity
Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 Dividend Payout Ratio - 31.0% Dividend Yield - 2.86% 5 0 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 As of June 30, 2020 Source: NASDAQ Monthly Closing Price Data 8
Slide 9: Growing Franchise
Growing Franchise Average Total Assets 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Thousands 1,705,964 800,000 1,577,410 1,574,089 1,491,696 1,321,007 600,000 1,222,526 400,000 200,000 0 2015 2016 2017 2018 2019 2020 Q2 YTD Note: Acquisitions of Sierra Vista Bank occurred on October
Slide 10: Strong Net Income and NIM
Strong Net Income and NIM 25,000 4.60 4.51 4.50 4.44 4.40 20,000 4.40 4.30 15,000 4.20 4.11 4.06 Percent Thousands 4.10 21,289 21,443 10,000 4.01 4.00 15,182 14,026 10,964 3.90 5,000 8,924 3.80 0 3.70 2015 2016 2017 2018 2019 2020 Q2 YTD Net Income Net Interest Margin 10
Slide 11: Solid Earnings ROAA / ROAE
Solid Earnings ROAA / ROAE 1.60 12.00 10.07 1.40 9.84 9.39 10.00 1.20 8.12 7.92 7.69 8.00 1.00 0.80 6.00 1.36 1.35 Percent ROAE ROAA Percent ROAA 0.60 1.15 1.05 4.00 0.90 0.94 0.40 2.00 0.20 - - 2015 2016 2017 2018 2019 2020 Q2 YTD ROAA ROAE 11
Slide 12: Steady Deposit Growth and Lowest Cost of Funds
Steady Deposit Growth and Lowest Cost of Funds Average Total Deposits 1,600,000 0.15 0.16 1,400,000 0.14 1,200,000 0.11 0.12 1,000,000 0.10 0.09 0.09 0.09 0.08 800,000 0.08 1,445,543 Percent Thousands 1,284,305 1,333,754 1,295,780 600,000 0.06 1,144,231 1,065,798 400,000 0.04 200,000 0.02 0 0.00 201
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix Total Deposits = $1.65 Billion TCDs 5% Money Market 18% Non-Interest Bearing 50% Now/Savings 27% As of June 30, 2020 13
Slide 14: Loan Totals and Yield
Loan Totals and Yield Average Total Loans 1,200,000 5.60 5.54 5.51 5.50 5.50 1,000,000 5.40 800,000 5.29 5.27 5.30 600,000 Percent Thousands 1,000,910 5.20 908,419 928,560 400,000 790,504 5.13 5.10 578,899 644,282 200,000 5.00 0 4.90 2015 2016 2017 2018 2019 2020 Q2 YTD Total Loans Loan Yield * Loan
Slide 15: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Total Loans = $1.13 Billion Consumer & Equity Loans and Installment, 4% Other Real Estate, Lines, 5% 3% Commercial & Industrial, 27% Commercial Real Estate, 28% Agriculture Production & Land, 9% R/E Construction & Owner Occupied Land, 7% Real Estate, 18% As of June 30
Slide 16: Agricultural Loan Commitments
Agricultural Loan Commitments Pistachios Citrus 1% 1% Cotton 2% Cherries Tree Fruit Almonds 3% 16% 19% Table Grapes Raisins 6% 7% Open Land 12% Tomatoes 11% Walnuts Row Crops 5% 3% Other 12% Wine Grapes 2% As of June 30, 2020 16
Slide 17: Non Performing Loans
Non Performing Loans 3,500 1.80 1.61 1.60 3,000 1.40 1.23 1.24 2,500 1.20 0.97 0.99 0.97 2,000 1.00 Percent Thousands 0.80 1,500 2,945 2,740 2,542 2,413 2,406 0.60 1,000 1,693 0.40 500 0.20 0 - 2015 2016 2017 2018 2019 2020 Q2 YTD Non Performing Assets ALLL/Loans * ALLL/Loans 6/30/2020 w/o PPP and a
Slide 18: Special Mention Loans
Special Mention Loans 40,000 6.00 35,000 4.80 5.00 30,000 3.95 4.00 25,000 3.17 2.99 2.86 20,000 3.00 2.43 Percent Thousands 35,735 15,000 29,911 28,719 28,183 26,254 2.00 21,908 10,000 1.00 5,000 - - 2015 2016 2017 2018 2019 2020 Q2 YTD Special Mention Loans SM Loans/Gross Loans 18
Slide 19: Substandard Loans
Substandard Loans 60,000 6.54 7.00 6.00 50,000 5.55 5.31 5.00 40,000 3.59 4.00 3.43 30,000 3.09 Percent Thousands 3.00 49,464 49,998 20,000 38,672 33,838 2.00 31,764 28,394 10,000 1.00 - - 2015 2016 2017 2018 2019 2020 Q2 YTD Substandard Loans Sub Loans/Gross Loans 19
Slide 20: Conservative Investment Portfolio
Conservative Investment Portfolio Total = $503 Million Total = $638 Million Yield = 2.91% Yield = 2.50% Effective Duration 4.00 Effective Duration 4.56 US Government Private Equity Corporate Agencies Equity US Label Fed Funds Mutual Debt 7% Private Mutual Government Mortgage Sold Funds 1% Label Fed
Slide 21: On the Horizon
On the Horizon Improve Efficiencies Monitor COVID-19 Impacts on Customers and Local Economy Proactively Respond to COVID-19 Related Borrower Issues Organic Loan & Deposit Growth Invest in Team & Technology 21
Slide 22: Investing in Relationships
Investing in Relationships 22
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